S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7622

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 20, 2015
                               ___________

Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
  tee on Education

AN ACT to establish  a  semiconductor  manufacturing  tax  stabilization
  reserve  fund in the Ballston Spa Central School District to lessen or
  prevent increases in the school district's real property tax levy

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The legislature hereby finds that the
private  development  and  ownership  of  a  semiconductor manufacturing
project or projects located  within  the  Ballston  Spa  Central  School
District may result in instability in the real property tax base and the
budgets  of  the district due to the uncertainty with the assessments of
such semiconductor manufacturing project or projects and the variability
of the payments in lieu of taxes prior to and  at  termination  of  such
payments.
  S 2. Definitions. As used in this act:
  (a)  "Board  of  education" or "board" means the board of education of
the Ballston Spa Central School District.
  (b) "Semiconductor manufacturing tax stabilization  reserve  fund"  or
"fund"  means  the semiconductor manufacturing tax stabilization reserve
fund established pursuant to this act.
  (c) "Payments in lieu of taxes" or "payments" means payments  in  lieu
of taxes receivable by the school district pursuant to contracts entered
into  in  accordance  with section 412-a of the real property tax law or
section 858 of the general municipal law on any  semiconductor  manufac-
turing  project or projects located wholly or partially within the Ball-
ston Spa Central School District.
  (d) "School district" or "district" means  the  Ballston  Spa  Central
School District.
  (e) "Semiconductor manufacturing project or projects" shall be defined
as  in  section 412-a of the real property tax law and shall include the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11059-02-5
              

A. 7622                             2

land upon which the project is located, buildings for use in  the  manu-
facturing  of  semiconductors, associated buildings, and the acquisition
and installation therein of certain machinery and equipment.
  S  3.  Semiconductor manufacturing tax stabilization reserve fund. The
board of education is hereby authorized to establish a tax stabilization
reserve fund to lessen or prevent increases  in  the  school  district's
real property tax levy resulting from decreases in revenue due to chang-
es  in the amount of or termination of payments in lieu of taxes receiv-
able by the school district provided, however, that no such  fund  shall
be  established  unless  approved  by  a  majority vote of the qualified
voters of the district present and voting on a separate ballot  proposi-
tion  therefor  at  either a special district meeting which the board of
education may call for such purposes, or at the annual district  meeting
and  election,  to be noticed and conducted in either case in accordance
with the provisions of article 41 of the education law. Moneys shall  be
paid  into  and  withdrawn from the fund, and the fund shall be adminis-
tered, as follows:
  (a) For any school district fiscal year commencing after the effective
date of this act and after the establishment of the semiconductor  manu-
facturing  tax  stabilization  reserve  fund, the board of education may
determine that there shall be paid into the fund all or any  portion  of
the  amount  by  which  the  payments in lieu of taxes receivable by the
school district for such fiscal year is greater than the amount of  such
payments  received by the school district for the preceding fiscal year,
provided that no payment into the reserve fund shall cause  the  balance
of  the  fund  to  exceed  the  amount  approved in a ballot proposition
described above.
  (b) Moneys may be withdrawn from the semiconductor  manufacturing  tax
stabilization reserve fund subject to the following limitations:
  (1) For any fiscal year for which payments in lieu of taxes receivable
by  the  school  district  are  less  than  the  amount of such payments
received for the  immediately  preceding  fiscal  year,  or  the  school
district  does not anticipate receiving any payment, the board of educa-
tion may authorize a withdrawal from the fund in an amount not to exceed
the amount of the payments received for the immediately  preceding  year
less the amount of the payments receivable for the fiscal year for which
the budget and tax levy is being determined.
  (2) Notwithstanding paragraph one of this subdivision, and in addition
to any withdrawal from the fund authorized pursuant to this subdivision,
moneys may be withdrawn from the fund for any fiscal year to be expended
for any other lawful purpose, provided, however, that no such withdrawal
and  expenditure shall be made unless approved by a majority vote of the
qualified voters of the district present and voting on a separate ballot
proposition therefor at either a  special  district  meeting  which  the
board  of education may call for such purpose, or at the annual district
meeting and election, to be noticed and  conducted  in  either  case  in
accordance with the provisions of article 41 of the education law.
  (c)  The  moneys  in the semiconductor manufacturing tax stabilization
reserve fund shall be deposited,  invested  and  accounted  for  in  the
manner provided for in subdivisions 2 and 6 of section 3651, and section
3652 of the education law.
  (d)  Deposits to and withdrawals from the fund shall be disclosed in a
manner consistent with the required disclosures of similar reserve funds
held by the district, including disclosures required by the property tax
report card prepared by the  district  pursuant  to  the  provisions  of
subdivision  7  of  section  1716 of the education law; and deposits and

A. 7622                             3

withdrawals made in each fiscal year shall be subject to the  district's
annual budget approval process.
  S  4.  Subject  to section five of this act, when computing the school
district's tax levy limit for a school year pursuant to subdivision 3 of
section 2023-a of the education law:
  (a) The payments in lieu of taxes receivable for the prior school year
shall be decreased by any amount paid into the semiconductor manufactur-
ing tax stabilization reserve  fund  for  such  prior  school  year  and
increased  by  any  amount withdrawn from the fund for such prior school
year.
  (b) The payments in lieu of taxes receivable in the coming fiscal year
shall be decreased by the amount to be paid into the semiconductor manu-
facturing tax stabilization reserve fund for such coming fiscal year and
increased by any amount to be withdrawn from the semiconductor  manufac-
turing tax stabilization reserve fund for such coming fiscal year.
  S  5.  The  provisions of section four of this act shall apply only in
the case of an agreement for payments in lieu of taxes that results in a
pilot payment to the school district that is equal to  or  greater  than
twenty  percent  of the district's tax levy in two or more taxable years
of the agreement; provided however, once such threshold is met, it shall
apply to every taxable year under such agreement.
  S 6. This act shall take effect immediately, and shall  be  deemed  to
have been in full force and effect on and after May 19, 2015.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7622--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 20, 2015
                               ___________

Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
  tee on  Education  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  establish  a  semiconductor manufacturing tax stabilization
  reserve fund in the Ballston Spa Central School District to lessen  or
  prevent increases in the school district's real property tax levy

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The legislature hereby finds that the
private development  and  ownership  of  a  semiconductor  manufacturing
project  or  projects  located  within  the  Ballston Spa Central School
District may result in instability in the real property tax base and the
budgets of the district due to the uncertainty with the  assessments  of
such semiconductor manufacturing project or projects and the variability
of  the  payments  in  lieu of taxes prior to and at termination of such
payments.
  S 2. Definitions. As used in this act:
  (a) "Board of education" or "board" means the board  of  education  of
the Ballston Spa Central School District.
  (b)  "Semiconductor  manufacturing  tax stabilization reserve fund" or
"fund" means the semiconductor manufacturing tax  stabilization  reserve
fund established pursuant to this act.
  (c)  "Payments  in lieu of taxes" or "payments" means payments in lieu
of taxes receivable by the school district pursuant to contracts entered
into in accordance with section 412-a of the real property  tax  law  or
section  858  of the general municipal law on any semiconductor manufac-
turing project or projects located wholly or partially within the  Ball-
ston Spa Central School District.
  (d)  "School  district"  or  "district" means the Ballston Spa Central
School District.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11059-03-5

              

A. 7622--A                          2

  (e) "Semiconductor manufacturing project or projects" shall be defined
as in section 412-a of the real property tax law and shall  include  the
land  upon  which the project is located, buildings for use in the manu-
facturing of semiconductors, associated buildings, and  the  acquisition
and installation therein of certain machinery and equipment.
  S  3.  Semiconductor manufacturing tax stabilization reserve fund. The
board of education is hereby authorized  to  establish  a  semiconductor
manufacturing  tax  stabilization  reserve  fund  to  lessen  or prevent
increases in the school district's real property tax levy resulting from
decreases in revenue due to changes in the amount of or  termination  of
payments  in  lieu  of taxes receivable by the school district provided,
however, that no such fund shall be established  unless  approved  by  a
majority vote of the qualified voters of the district present and voting
on  a  separate ballot proposition therefor at either a special district
meeting which the board of education may call for such purposes,  or  at
the annual district meeting and election, to be noticed and conducted in
either  case  in  accordance  with  the  provisions of article 41 of the
education law. Moneys shall be paid into and withdrawn  from  the  fund,
and the fund shall be administered, as follows:
  (a) For any school district fiscal year commencing after the effective
date  of  this  section and after the establishment of the semiconductor
manufacturing tax stabilization reserve fund, the board of education may
determine that there shall be paid into the fund all or any  portion  of
the  amount  by  which  the  payments in lieu of taxes receivable by the
school district for such fiscal year is greater than the amount of  such
payments  received by the school distinct for the preceding fiscal year,
provided that no payment into the reserve fund shall cause  the  balance
of  the  fund  to  exceed  the  amount  approved in a ballot proposition
described above.
  (b) Moneys may be withdrawn from the semiconductor  manufacturing  tax
stabilization  reserve  fund  for any fiscal year to be expended for any
lawful purpose, provided, however, that no such withdrawal and  expendi-
ture  shall  be made unless approved by a majority vote of the qualified
voters of the district present and voting on  a  single  proposition  as
part  of  the  district's  budget  at  the  annual  district meeting and
election, or, on a separate ballot proposition  therefor  at  a  special
district meeting which the board of education may call for such purpose,
to  be  noticed  and  conducted  in  either  case in accordance with the
provisions of article 41 of the education law.
  (c) The moneys in the semiconductor  manufacturing  tax  stabilization
reserve  fund  shall  be  deposited,  invested  and accounted for in the
manner provided for in subdivisions 2 and 6 of section 3651 and  section
3652 of the education law.
  S  4.  This  act shall take effect immediately, and shall be deemed to
have been in full force and effect on and after May 19, 2015.